Proposed Anti-Surplus Stripping Rules Dropped

Proposed Anti-Surplus Stripping Rules Dropped

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​These proposed measures, which were intended to prevent the conversion of dividends into capital gains, introduced uncertainty and complexity into the tax rules and may have caused unintended tax consequences. Specifically, these consequences could have resulted in, among other things, an increased tax cost on death, an increase in the tax cost on intergenerational transfers of family businesses and possible negative implications to capital dividend account balances.